Question

The high level of remittances in Kerala can lead to which of the following economic effects?

• A. A substantial increase in the industrial and manufacturing sectors.
• B. A significant decrease in the cost of living.
• C. A boost to the services sector and construction.
• D. A rapid diversification of the economy into high-tech export industries.

Answer 1

Answer:

C. A boost to the services sector and construction.

• Remittances provide a large amount of disposable income for families, which is often spent on consumption, real estate, and construction, giving a significant boost to these sectors of the economy.